NET SALES

9 Months Ended

Oct. 30, 2022

Revenue from Contract with Customer [Abstract]

Net Sales

NET SALES

The following table presents net sales, classified by geography:

	Three Months Ended				Nine Months Ended
in millions	October 30, 2022		October 31, 2021		October 30, 2022		October 31, 2021
Net sales – in the U.S.	$	35,784	$	33,736	$	111,834	$	106,095
Net sales – outside the U.S.	3,088		3,084		9,738		9,343
Net sales	$	38,872	$	36,820	$	121,572	$	115,438

The following table presents net sales by products and services:

	Three Months Ended				Nine Months Ended
in millions	October 30, 2022		October 31, 2021		October 30, 2022		October 31, 2021
Net sales – products	$	37,448	$	35,383	$	117,261	$	111,371
Net sales – services	1,424		1,437		4,311		4,067
Net sales	$	38,872	$	36,820	$	121,572	$	115,438

The following table presents major product lines and the related merchandising departments (and related services):

Major Product Line	Merchandising Departments
Building Materials	Building Materials, Electrical/Lighting, Lumber, Millwork, and Plumbing
Décor	Appliances, Décor/Storage, Flooring, Kitchen and Bath, and Paint
Hardlines	Hardware, Indoor Garden, Outdoor Garden, and Tools

The following table presents net sales by major product lines (and related services):

	Three Months Ended				Nine Months Ended
in millions	October 30, 2022		October 31, 2021		October 30, 2022		October 31, 2021
Building Materials	$	15,343	$	13,809	$	46,095	$	41,880
Décor	13,070		12,783		40,040		38,060
Hardlines	10,459		10,228		35,437		35,498
Net sales	$	38,872	$	36,820	$	121,572	$	115,438

Deferred Revenue

For products and services sold in stores or online, payment is typically due at the point of sale. When we receive payment from customers before the customer has taken possession of the merchandise or the service has been performed, the amount received is recorded as deferred revenue until the sale or service is complete. Such performance obligations are part of contracts with expected original durations of typically three months or less. As of October 30, 2022 and January 30, 2022, deferred revenue for products and services was $2.2 billion and $2.6 billion, respectively.

We further record deferred revenue for the sale of gift cards and recognize the associated revenue upon the redemption of those gift cards, which generally occurs within six months of gift card issuance. As of both October 30, 2022 and January 30, 2022, our performance obligations for unredeemed gift cards were $1.0 billion. Gift card breakage income, which is our estimate of the portion of our gift card balance not expected to be redeemed, was immaterial during the three and nine months ended October 30, 2022 and October 31, 2021.